Global Film, TV Production Stalls As SAG-AFTRA Goes On Strike, Streaming Giants And Studios In Crosshairs

Zinger Key Points
  • A historic SAG-AFTRA strike has halted global film and TV production, jeopardizing release schedules and box office revenues.
  • Major productions and film festivals will bear the brunt of the strike, with effects felt across Netflix, Disney, Paramount, and more.

It’s a new day in Hollywood, one unlike any other in over six decades.

What Happened: The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), the union representing about 160,000 media professionals ranging from actors to stunt performers, announced a strike after failing to reach an agreement with the Alliance of Motion Picture and Television Producers (AMPTP).

The actors’ strike, which comes on the heels of an ongoing Writers Guild of America strike, will halt film and television production worldwide. The impacts of the labor stoppage will be striking, affecting everything from award shows and film festivals to box office revenues and movie premieres.

Read Also: 5 Stocks To Keep An Eye On As WGA Strike Could Bring Hollywood To A Halt – Why History Suggests Selling Movie Stocks During Strikes

The Issues, Unfolded: The actors represented by SAG-AFTRA are fighting for better pay and working conditions, given the seismic shifts in the entertainment industry due to the rise of streaming services and the looming threat of artificial intelligence.

Their concerns are far from trivial: declining residuals, stagnant wages, unpredictable job opportunities, and the potential misuse of AI technologies to replicate an actor’s performance have all come under the spotlight, according to Variety.

The union’s demands resonate with the membership, with 98% of the 65,000 SAG members who cast a ballot voting in favor of the strike.

Fallout For The Industry: The strike is expected to pummel the industry. Actors are refusing to provide their labor. A significant source of profits for studios, production companies, and streaming services would be abruptly cut off.

A majority of film and television sets will be closed indefinitely, pushing back release dates for new movies and shows.

Actors will also be barred from promoting their upcoming projects, a vital part of movie marketing strategies. The strike notice issued by SAG-AFTRA includes participation in premieres, press junkets, interviews, panels, and social media promotion, leading to a potential dip in box office performance, affecting companies tied to the new and upcoming movies.

If an agreement is not reached soon, the effects will be wide-ranging, hitting streaming companies and studios like:

  • Netflix Inc NFLX
  • Walt Disney Co's DIS Hulu, Disney+, Pixar Animation, Lucasfilms Ltd, and others.
  • Comcast Corporation's CMCSA Universal Pictures, DreamWorks, and others.
  • Paramount Global's PARA PARAA Nickelodeon, MTV, and others.
  • Warner Bros Discovery Inc's WBD HBO, Warner Bros. Entertainment, and others.
  • Sony Group Corp's SONY Sony Pictures, Columbia Pictures, and others.

Impact On Film Festivals: Several major film festivals scheduled in the coming months will likely be heavily impacted. The fall trifecta of Venice, Toronto, and Telluride are expected to bear the brunt, according to ScreenDaily.

That means festivals, which thrive on star attendance and press coverage, could see a dramatic decrease in ticket sales, sponsor satisfaction, and overall buzz.

Repercussions On Upcoming Blockbusters: Major productions are also feeling the impact of the strike. For instance, Marvel’s “Deadpool 3” halted filming due to the ongoing strike, making it one of the first major productions to be affected, according to Variety.

The cast of "Oppenheimer," a much anticipated movie release, left the premier, according to ABC. The cast, featuring names like Robert Downey Jr., Matt Damon, Emily Blunt, and more, was part of the project filmed by Universal Pictures.

A Prolonged Battle? The longest actors’ strike on record lasted for six months in 2000. Today, with not just actors but also screenwriters on the picket lines, the Hollywood landscape faces an unprecedented challenge.

Read Next: Trump NFT Company Has Less Than $1000 In The Bank, Most Of Its Fortune Is In An Ethereum Wallet

Market News and Data brought to you by Benzinga APIs
Posted In: EntertainmentLarge CapMid CapNewsTop StoriesMediaTrading IdeasGeneralDeadpool 3Emily BluntMatt DamonOppenheimerRobert Downey Jr.SAG-AFTRAwriters strike
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!